Dalata Hotel Group welcomes 'robust' trading as earnings rise to more than €232m
Crowley, Ceo Dermot Of Dalata
Ireland's largest hotel operator Dalata said trading remained "robust" throughout the second half of 2024 as the group continued to expand across the UK and Europe.
In a trading update for the last six months of the year, the Maldron and Clayton Hotel owners said it expects to deliver adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of more than €232m, reflecting 4% annual growth.
The group's revenue per available room is expected to be 3.5% ahead of last year for November and December, Dalata said, with strong performances in particular in Dublin and the UK.
For the full year, revenue per available room is forecasted to be 1% ahead of 2023.
The group estimates that recently announced changes in UK National Insurance, the increased minimum wage rates in Ireland, and the increased living wage rates in the UK will increase hotel payroll by around 5% in 2025 on a ‘like-for-like basis’.
However, it said it "continues to respond proactively to cost pressures" and is confident it will cover these additional costs with the benefit of a €2m reduction in contracted energy pricing and through growth in revenue per room across its markets.
Dalata also noted that the will benefit from the full-year impact of hotels opened in 2024 in the new year, and the addition of the Radisson Blu Hotel at Dublin Airport, which is subject to approval from the Competition and Consumer Protection Commission.
"We are on track to deliver another strong financial performance, headlined by another year of growth in both our revenue and Adjusted Ebitda performance," said Dermot Crowley, CEO of Dalata.
"It is always challenging when external input costs are rising, however, I am delighted with how everyone at Dalata has responded to the challenge."
"We opened four new hotels in the UK this summer, we added to our growth pipeline with the acquisition of the Radisson Blu Hotel Dublin Airport and we exchanged an agreement for lease for a Clayton hotel to be developed in the heart of the City of London."
Mr Crowley also noted the need to increase passenger numbers at Dublin Airport, calling it "crucial" to support further growth across the Irish economy, particularly in the hospitality and tourism sectors.
"Looking forward, I am pleased the cap will not apply in the summer of 2025, and we are hopeful that it will be removed fully in time.
"It is expected that passenger numbers at Dublin Airport will grow by 4% in 2025, with increased access from North America, which will be very positive for hotels across the whole of Ireland."